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Recommended: Advantages and disadvantages of strategic planning

2. The best fit approach- Armstrong emphasises that HR strategies have to depend on the business framework, conditions and nature. Best fit may be perceived in relations to vertical assimilation or arrangement between the business and human capital strategies. Three different models can be identified; life-cycle, competitive strategy and strategic configuration:
 Life cycle models stress the configuration of correct HR rules and practices for the different time periods (start-up, growth, maturity and decline).
 Competitive strategy- to reach competitive advantage, three approaches have been designed by Porter (1985)
• Novelty- being the unique producer.
• Quality- providing good quality products and services to clients.
• Cost leadership- the deliberate outcome of strategies expected at “managing away expense”
It was contended by Schuler and Jackson (1987) that to succeed the best outcome it is essential to match the function features of individuals in an organisation with the chosen plan and policy.

 Strategic configuration- is an alternative method to best fit. It is the suggestion that companies will be more efficient if they match the best types outlined by concepts such as those created by Miles and Snow (1978) or Mintzberg (1979). This improved efficiency is qualified to the interior reliability or fit among the forms of appropriate strategic aspects. Mintzberg categorised them into the following types; simple structure, machine bureaucracy, professional bureaucracy, divisionalized form and adhocracy. Miles and Snow defined four categories of organizations:
• Prospectors- work in an atmosphere where fast and random changes appear.
• Defenders- occurs in more predictable, steady environments; tend to participate in ...

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...he strategies itself and ignores the financial part of it, such as implementation or operating costs. Strategic management not always can be implemented into smaller organisations which differ from the corporate environment.
However, regardless of some disadvantages it is still very beneficial for all organisations to manage individuals within a strategic and coherent framework that reflects the business strategy. There are many different approaches to strategic human resource management, however, no single HRM strategy that will bring success in all circumstances. Organisations need to outline a strategy that is unique to their own settings and conditions in terms of framework, goals and the demands of organisational stakeholders. SHRM is very powerful instrument to manage human capital in the rapidly changing environment that most organisations are facing today.

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